Market Forces in The Development of Cities
Market forces in the development of cities relates to how the location decision of firms and households causes the development of cities. The nature and behavior of markets depends somewhat on their locations therefore market performance partly depends on geography (McCann 2001:1). If a firm locates in a geographically isolated region, their market performance will be different than a firm located in a concentrated region. The location decisions of both firms and households create cities that differ in size and economic structure. When industries cluster, like in the Silicon Valley in California, they create urban areas with dominant firms and distinct economies.
By looking at location decisions of firms and households, the urban economist is able to address why cities develop where they do, why some cities are large and others small, what causes economic growth and decline, and how local governments affect urban growth (O'Sullivan 2003:14). Because urban economics is concerned with asking questions about the nature and workings of the economy of a city, models and techniques developed within the field are primarily designed to analyze phenomena that are confined within the limits of a single city (McCann 2001:2).
Read more about this topic: Urban Economics
Famous quotes containing the words market, forces, development and/or cities:
“the old palaces, the wallets of the tourists,
the Common Market or the smart cafés,
the boulevards in the graceful evening,
the cliff-hangers, the scientists,
and the little shops raising their prices
mean nothing to me.”
—Anne Sexton (1928–1974)
“The most exciting happiness is the happiness generated by forces beyond your control.”
—Ogden Nash (1902–1971)
“For decades child development experts have erroneously directed parents to sing with one voice, a unison chorus of values, politics, disciplinary and loving styles. But duets have greater harmonic possibilities and are more interesting to listen to, so long as cacophony or dissonance remains at acceptable levels.”
—Kyle D. Pruett (20th century)
“Lord, how long?”
—Bible: Hebrew Isaiah, 6:11.
Asking how long will the chastisement of the people last. God replies, “Until the cities be wasted without inhabitant, and the houses without man, and the land be utterly desolate, and the Lord have removed man far away, and there be a great forsaking in the midst of the land.”